How Small Towns in Ukraine Can Compete for Residents Amid the Demographic Crisis

How Small Towns in Ukraine Can Compete for Residents Amid the Demographic Crisis

What Place Branding is, and why Ukrainian towns and villages need it

Today, Ukraine is forced to address three major challenges related to preserving and growing its population. The first is bringing emigrants back. War and economic instability have triggered a large wave of migration, and even after hostilities end, the country may face a situation in which people do not return due to a lack of prospects.

This creates a vicious circle: a weak economy does not encourage people to come back, while a shortage of people slows economic recovery. Many return only to leave again after failing to see real opportunities. To break this cycle, it is not enough to create conditions for return—there must also be motivation to stay. That motivation can include confidence in the future, opportunities for development, a safe environment, and a sense of belonging and integration within a community.

The second challenge is retaining people in their home areas, especially in smaller towns. Housing and jobs are fundamental needs, but they are not sufficient on their own. Research shows that attachment to place can help people endure even economic hardship. People are more likely to stay if they feel connected to their community. But if that connection is missing, the community can become a source of negativity. Residents begin to criticise the place where they live, creating a negative image for potential new residents, internally displaced people, or tourists. To keep people, communities must cultivate love for their town or village, pride in it, and belief in its future.

The third challenge is integrating internally displaced people and future migrants. The war has caused unprecedented internal displacement, and in some communities, newcomers already make up as much as 30% of residents. They carry significant economic potential, but often feel like temporary guests rather than part of the community. This can lead to parallel social groups that barely interact. International experience shows that the faster migrants feel they belong, the more actively they integrate: they find work, start businesses, and join local initiatives. This is something Ukraine can learn from Europe—because within just a few years, 11% of newly arrived Ukrainians say they feel more integrated there than at home.

In conditions of intense competition for human capital, Ukraine’s demographic crisis requires not only acknowledging the problem, but also a systemic approach to solving it. This issue concerns everyone—residents, authorities, potential investors, and tourists. Their interest, trust, and involvement are key to overcoming the situation. And one globally recognised tool that is still not widely used in Ukraine—place branding—can be part of the answer.

What is Place Branding?

Place Branding is a systemic communication tool that helps a territory (a town, village, or region) develop by shaping an image that supports strategic goals—particularly economic ones. It creates a framework for communicating with key internal and external stakeholders, builds reputation, strengthens emotional ties between people and place, increases trust, and encourages people to invest themselves in the community’s future.

One of the most important questions facing Ukraine and its regions is: Who are we, and what do we exist for? Without an answer, it is difficult to speak about long-term economic success, preservation of national identity, and protection of cultural heritage. If solutions are not found, Ukraine risks becoming just “a place on the map,” losing its distinctiveness and its development prospects.

Place Branding as a systemic solution

Place branding is often understood too narrowly—as a new logo or a tourism brochure. But it is much more than that. Like any long-term process, place branding unfolds through several stages. It begins with research that helps a community understand what it is, what its strengths and weaknesses are, what residents expect, and which direction of development is most organic. Then a strategy is formed—a shared vector that turns abstract ideas into concrete priorities. Next, it is important to translate big goals into clear, measurable projects and to identify resources for implementation.

How can communities compete for people?

A community becomes “home” not only through economic factors, but also through creating experiences that strengthen people’s connection to the place:

  • History and culture. Understanding local history, traditions, and achievements builds emotional attachment.

  • Social interaction. People must feel their voice matters—that they are not just residents, but active participants in community life.

  • Visible progress. Infrastructure projects, social initiatives, and events must be tangible and demonstrate that the place is developing.

Place branding in Ukraine: intuitive, but not systemic

Although place branding as a systemic solution is still rarely used in Ukraine, many communities already intuitively understand that development depends not only on housing and jobs, but also on building an emotional connection to place. For now, however, most efforts are fragmented—focused on just one aspect. Perhaps in our context this is natural: to start with specific, even small projects, and later connect them into one system.

How it works: examples from Ukrainian communities

In Kozelshchyna (Poltava region), the community started by restoring the local library and expanding it into a public space as a first step toward building trust and engagement. Over time, the Smart Space became a cultural and educational hub hosting courses, lectures, and creative evenings that attract visitors even from nearby larger cities. The main goal is to develop awareness and critical thinking among young people and broaden residents’ horizons.

In 2019, we wanted to adopt someone else’s successful experience and realised that similar projects did not exist in Ukraine—we would have to be the first. And if you are first, you carry the responsibility to do it the best way. So the project has two stories: in addition to developing the region, it should also become a model for others. Now, four years later, we understand that it worked.

Sometimes, engaging people can start with the simplest steps—for example, helping residents learn more about their local history. It may sound unexpected, but even those who have lived in a community for 20–30 years often do not know what makes it unique.

In Manevychi (Volyn region), local historian Roman Pavliuk, a journalist for Volynskyi Monitory, began by publishing old photographs and archival materials. Over time, this interest evolved into lectures, articles, excursions—and deeper research into the community’s history.

Today, residents of Manevychi perceive their place differently, recognising its historical value. This not only strengthens a sense of belonging but also creates a new development vector—from restoring heritage sites to attracting tourists and building educational routes.

Today I am convinced that researching and popularising local history is not only an interesting pastime, but also an extremely useful undertaking.

In Bilogorodka (Kyiv region), many initiatives come from local authorities, who see one of their most important goals as uniting the community. This is a complex process, especially when a community consists of several villages, each with its own history, traditions, and habits. Some villages are larger and more dynamic; others are small and intimate, where everyone knows neighbours by name. It is clear that residents may differ greatly in their views on development, priorities, and even lifestyle.

Local authorities try to find approaches that help residents feel part of a shared community, create dialogue, and build cooperation.

Shared events bring people together, and dialogue helps build bridges of trust. We already see the first results after four years and are proud to work for the community — and together with the community.

Key takeaway: Place branding requires system thinking

All these examples show that communities can begin from different entry points—culture, history, social interaction. But they become far more effective when connected into a single place-brand development strategy.

At the same time, balance matters: if a community focuses only on strategy development, there is a risk the strategy will never be implemented—ending up as another document on a shelf. Global statistics show that over 80% of strategies remain on paper, and after 5–10 years they are replaced by new ones that also fail to materialise. Ukraine is no exception. Moreover, many such documents do not include a key section on communication with the main “implementer and beneficiary” of any strategy—the population, as well as other audiences crucial to success.

That is why place branding must include not only planning, but also active communication and engagement. It is important not just to deliver projects, but to talk about them, listen to residents, adjust decisions, and build a shared vision of the future. This is not only about communication—it is also about physical changes residents can feel and see in their environment. That is the essence of place branding.

Outcomes of Place Branding

Successful implementation of a place-branding strategy leads to tangible results:

  • Stronger identity. Residents feel proud of their place and actively participate in its development.

  • Economic growth.

  • Social cohesion. Resident and business participation in projects creates a sense of unity and shared progress.

  • Increased attention. The community becomes an example for others, demonstrating how a systemic branding approach changes lives.

For Ukraine today, however, place branding is first and foremost a tool for survival amid demographic crisis and fierce competition for people. Places with meaning and an attractive emotional image become magnets. If a place has no clear identity, no shared “story,” no atmosphere, and residents do not feel they belong—why would anyone move here or invest?

Communities must not simply “exist”—they must become places where people want to stay.

About the authors

Iryna Mushtina

Co-founder of Power of Place, a place-branding agency.
Founder of the digital agency CF.Digital (Kyiv), Founder and CEO of CAT Digital (London).
Member of the Supervisory Board of the All-Ukrainian Advertising Coalition.
Co-founder and Chair of the Board of the Committee of Digital Developers of Ukraine.
Holds a Master’s degree in Place Branding from Middlesex University London.
Currently works on place-branding projects and advises public and charitable-sector organisations on strategic communications and digital transformation in Ukraine and the UK.

Nataliia Boiarchuk

Co-founder of Power of Place, a place-branding agency.
Managing Partner of the activation agency Adsapience (Kyiv). Co-founder of the Sustainability Strategies Institute.
Holds an MBA (Marketing and Finance) from the Babcock School of Management, Wake Forest University (USA), and a Sustainability Communications specialist diploma from CIPR (UK).
In recent years, she has advised and supported communications functions for civil-society organisations in nature conservation and green energy, and has been involved in developing and implementing projects supporting society through businesses in Ukraine and the UK.

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